I downloaded the latest directx9 full installer package, as I generally don't go for web installers. I installed and re-installed but when i try to configure pcsx2 it keeps telling me to update DX9 components and sends me to the web installer. . .

Thanks, but that doesn't answer my question- which actually is: how do i use the full dx9 installer? The last time I used a microsoft web installer it messed with my boot settings, I use a dual boot machine .

As far as I can see PCSX2 just doesn't see the dx9 files because they are in the wrong place.
When I run the downloaded DX9 installer, it asks me where to install the files... I don't get it, how user friendly is that??? Where should I install it?

(my windows XP install is just there for games and I prefer not to go online with it as I don't like messing around with antivirus and constant updates- I have Skyrim running on it just fine....)

A directx update should never mess with your boot settings, ever. If you get it from microsoft it shouldnt touch it at all. As for the full installer, im not sure if that will contain the relevant sdk update files you need, it's nothing to do with pcsx2 not being able to see it, this will never happen.

The installer is asking you where to extract the temporary files so it can install it, not where to save it.